audusd hit a short term ceiling 1021412015
AUDUSD recovered a lot of its lost ground overnight, following some substantial loses on the back of the PBoC’s decision to devalue the yuan. This […]
AUDUSD recovered a lot of its lost ground overnight, following some substantial loses on the back of the PBoC’s decision to devalue the yuan. This […]
AUDUSD recovered a lot of its lost ground overnight, following some substantial loses on the back of the PBoC’s decision to devalue the yuan. This is raising concerns about the health of Australia’s largest trading partner. It also increases the threat of global deflation in consumer prices and commodity prices. Nonetheless, some wide US dollar weakness overnight helped AUDUSD regain some of these losses, with the pair now nudging resistance around 0.7400/15. NY Fed Chair Dudley expressed some fairly unenthusiastic comments about the prospect for tighter monetary policy in the US, which scared Fed hawks.
There’s not much happening in Australia for the remainder of the week, but there is some important US economic data which will be assessed as the market attempts to predict when the Fed will begin its tightening cycle.
1230GMT – US retails sales (July)
0115GMT – US industrial production (July)
From technical perspective, AUDUSD looks a little trapped. There’s a lot of resistance between 0.7400 and 0.7450 and then again around 0.7500, and we don’t think it has the legs to climb that high in the near-term. On the downside we’re eyeing a stiff, but weakening, support zone around 0.7250.
Source: City Index